Item Coversheet

CITY OF RIVIERA BEACH CITY COUNCIL
AGENDA ITEM SUMMARY

Meeting Date: 7/22/2019 
Agenda Category:

Subject: 

SETTLEMENT AGREEMENT BETWEEN THE CITY OF RIVIERA BEACH UTILITY DISTRICT AND HARTFORD FIRE INSURANCE COMPANY


Recommendation/Motion: 

Originating Dept UTILITY SPECIAL DISTRICT  Costs  
User Dept.UTILITY SPECIAL DISTRICT Funding Source
AdvertisedNo Budget Account Number
Date   
Paper   
Affected PartiesNot Required   

Background/Summary: 

On or about August 5, 2015, Close Construction, LLC ("Close") entered into a Construction Agreement with Riviera Beach Utility Special District (RBSUD) for rehabilitation and replacement of lift stations 10 and 50 (the "Project"); and Hartford Fire Insurance Company ("Hartford"), as surety, and Close, as contractor, issued a public construction bond (no. 21BCSHH1366) to RBUSD, as obligee, conditioned upon the full and faithful performance of the contract (the "Bond"); 

 

RBUSD terminated Close's contract on the Project and called upon Hartford to reimburse RBUSD for all of its losses and expenses related to the termination of Close's contract and completion of Close's work; and Hartford solicited from and negotiated a price with Wharton Smith ("Wharton") to complete Close's work; and RBUSD then entered into a contract with Wharton to complete Close's contract; and Wharton has completed its work and has been paid in full by RBUSD; and RBUSD  has  made  a  demand  to  Hartford  to  reimburse  it  for  losses and expenses incurred by RBUSD in excess of the contract balance that remained in Close's contract.

 

RBUSD and Hartford wish to avoid a lawsuit concerning Hartford's  obligations to RBUSD under its public construction bond in the circumstances of this dispute.

 
Fiscal Years
Capital Expenditures
Operating Costs
External Revenues
Program Income (city)
In-kind Match (city) 
Net Fiscal Impact
NO. Additional FTE Positions
(cumulative)

III. Review Comments

A. Finance Department Comments:
 
B. Purchasing/Intergovernmental Relations/Grants Comments:
 
C. Department Director Review:
Contract Start Date 
Contract End Date
Renewal Start Date
Renewal End Date
Number of 12 month terms this renewal
Dollar Amount
Contractor Company Name
Contractor Contact
Contractor Address
Contractor Phone Number
Contractor Email
Type of Contract
Describe
ATTACHMENTS:
File NameDescriptionUpload DateType
RBUSD_Resolution_(1)_for_Hartford_Settlement_(2).pdfRESOLUTION7/15/2019Resolution
Settlement_Agreement___Release_2019-07-11-164854_(1).pdfSETTLEMENT AGREEMENT7/12/2019Agreement
REVIEWERS:
DepartmentReviewerActionDate
UtilityAnswererApproved7/16/2019 - 11:07 AM
AttorneyWynn, DawnApproved7/15/2019 - 6:03 PM
City ClerkJacobs, DeirdreApproved7/15/2019 - 6:15 PM
City ManagerJacobs, DeirdreApproved7/16/2019 - 1:44 PM